Trump Media Is Taking Aim at Short Sellers. Should You Buy DJT Stock Here?
Trump Media & Technology Group (DJT) has asked the U.S. Securities and Exchange Commission (SEC) to investigate what it calls “suspicious” short-selling activity in its stock. It focuses on a large short position disclosed by the U.K.-based hedge fund Qube Research & Technologies. Qube revealed a short position valued at approximately $105 million.
This ended up sparking a nearly 12% rally in DJT shares on April 17 as similar actions against short sellers have fueled stock surges. For example, AppLovin (APP) rebounded after announcing it would be investigating short reports against the company. This isn’t the first time Trump Media has cried foul over short selling. In April 2024, CEO Devin Nunes, who is a former Republican Congressman, asked the Nasdaq Exchange to look into potential market manipulation. He later pushed House Republican committees to probe eight financial firms for similar reasons.
The Short-Selling News
Trump Media & Technology Group said that this short position could involve “illegal naked short selling,” which means shares are sold short without the seller first borrowing them. This is prohibited in the U.S., and TMTG pointed out that Qube disclosed its short position in Germany. The company also said that neither Nasdaq nor the New York Stock Exchange could confirm when Qube’s reported trades were executed.
TMTG noted that the total reported short interest in DJT remained relatively stable at around 11 million shares between late March and mid-April 2025. Plus, TMTG referenced DJT’s appearance on Nasdaq’s Regulation SHO Threshold Security List for over two months in 2024 as potential evidence of past suspicious trading.
Qube Research & Technologies responded that its short position is based on a quantitative model and does not reflect a view on the company’s fundamental value.
Should You Buy DJT Stock Now?
DJT could continue to see upside on the short-selling investigation and behave as a meme stock due to its ties to President Donald Trump, but that doesn’t necessarily mean you should buy the rally here. The market atmosphere is much tighter, and investors are derisking their portfolios.
Fundamentally, this stock screams no-go.
Trump Media is a loss-making company that reported a year-over-year decline in revenue in Q3. Truth Social’s user base pales in comparison to those of other social media companies. The company has expanded into streaming with Truth+ and financial services with Truth.Fi, but it remains unclear if these initiatives will allow TMTG to turn a profit.
With this in mind, I do not believe DJT stock is a buy for the long run. Investors should also note that no analysts, as tracked by Barchart, cover the stock.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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